Financial Authorities: "Time to Be Cautious with High-Risk Asset Investments Amid Asset Price Fluctuations"

[Asia Economy Reporter Ji Yeon-jin] Financial authorities have warned to be cautious of high-risk asset investments based on borrowing in preparation for potential asset price fluctuations following the results of the U.S. Federal Open Market Committee (FOMC) meeting.

On the 17th, Kim Tae-hyun, Secretary General of the Financial Services Commission, held a joint financial market inspection meeting with the Financial Supervisory Service to review the financial market situation, sector-specific risk factors, and necessary response measures following the previous day's FOMC meeting results, and made these remarks.

Secretary General Kim stated, "The government has been steadily preparing and implementing necessary measures according to market developments based on the 'COVID-19 Related Financial Market Diagnosis and Response System' that has been in operation since last February. At this point, while thoroughly managing the total volume of household loans according to the 'Household Loan Management Plan' announced last April, various support measures will continue to minimize the burden caused by future market fluctuations on small business owners and vulnerable borrowers who have not yet recovered from the impact of COVID-19."

He added, "Citizens should also be especially cautious at this time about high-risk asset investments based on excessive borrowing that exceeds their repayment capacity in preparation for potential asset price fluctuations."